DMP and Credit Rating

MrsTinks

tomb_raider wrote: »

Thanks (I think!) - I mean thanks for the reply but it's not pleasant reading. I thought that when the DMP was paid off then we'd be ok. I don't ever remember reading anywhere that it would take another 6 years or in my case 4 years from now as the defaults were in 2007.
You say I won't get any decent credit - do you mean I will be able to get credit but at a high rate? If I've got to wait another 4 years then my old car definitely won't last that long. Might be able to drag it through the MOT one more time but doubt if it would even make it to the next one after that!
Really appreciate all the replies here - thanks

Finishing your DMP IS good - honest but no finishing it early won't have much effect on your credit worthyness until the defaults drop off. Obviously your credit rating will have improved a little with the debts being marked settled (when they get round to marking them settled that is...)

Yes you could probably get a high rate credit card now with a low limit - not saying it's a good idea or bad. It WILL start rebuilding your credit rating but not likely enough to get finance for a car at an APR that isn't bordering on illegal

Most DMPs have allowances for a "savings" pot - for things like this. And a lot of people here find that they put something aside whilst on the DMP in case cars go belly up or boilers break etc rather than upping payments to creditors. Some use it to make full and final offers... however done is done

Would you be able to get the car through for now and then save really hard for another one? I don't know how many miles you do normally but I bought an old mini a few years ago for £500 and that car was superb I'm biased though cos mine was race tuned I did about 30 miles a day in it summer or winter (good fun in winter incidently!) so it IS possible to get a cheap run around for now and keep saving up

GunJack

tombraider - I never pay more than £800 for my cars...with your £700 you should have no problem picking one up with 12 month MoT on it.....my current saxo was £800 with a year's ticket and 6 months tax, and I expect to have it for 3-4 years at least....so why the need for a car loan

tomb_raider

MrsTine wrote: »

Finishing your DMP IS good - honest but no finishing it early won't have much effect on your credit worthyness until the defaults drop off. Obviously your credit rating will have improved a little with the debts being marked settled (when they get round to marking them settled that is...)

Yes you could probably get a high rate credit card now with a low limit - not saying it's a good idea or bad. It WILL start rebuilding your credit rating but not likely enough to get finance for a car at an APR that isn't bordering on illegal

Most DMPs have allowances for a "savings" pot - for things like this. And a lot of people here find that they put something aside whilst on the DMP in case cars go belly up or boilers break etc rather than upping payments to creditors. Some use it to make full and final offers... however done is done

Would you be able to get the car through for now and then save really hard for another one? I don't know how many miles you do normally but I bought an old mini a few years ago for £500 and that car was superb I'm biased though cos mine was race tuned I did about 30 miles a day in it summer or winter (good fun in winter incidently!) so it IS possible to get a cheap run around for now and keep saving up

Yes, hopefully will be able to get it through the MOT (if can't find cheap/reliable car) but that will take a few hundred - was waiting for an old car which my son's friend has but it has to have an insurance check first before it's available - if that happens before have to MOT the car then it's perfect but if not just have to try find another bargain in a few months time.
I did say before the DMP finished that we would save up & get a car so looks like will have to go that way.:think:

Donedoingdebt

tomb_raider wrote: »

You say I won't get any decent credit - do you mean I will be able to get credit but at a high rate?

Yes, there is credit out there, especially for car finance.
They usually advertise on TV & radio along such lines as "CCJ? - no problem. Bad credit history? - no problem! The thing is, they are a problem.
The interest rate is probably extortionate & I doubt they'd be very forgiving if you missed any payments & may end up persuing you quite aggressively for any arrears should things go wrong.

tomb_raider

Hi
Just thought I'd let you know that I bought a car last saturday.
It's a Peugeot 306 - 1998 in reasonable state outside & excellent inside.
Cost £700 (high mileage) Hopefully it will last a year & then see how things are.
Thanks for all your replies on here.
:T

Deep_In_Debt

Hey!
Sounds like a nice car. I had one of those and it lasted me for years, I virtually drove it into the gound and still managed to sell it on a few years later. One of the best cars I ever had...apart from my very first car, millions of years ago when I had a mini 1275GT...those were the days...!